Edinburgh-based financial data insights firm Smart Data Foundry has launched its new ‘Economic Wellbeing Explorer’, a new platform offering an unprecedented view of financial hardship in Scotland.
Using near real-time data from 5.3 million bank accounts, powered by NatWest Group, the new Explorer from Smart Data Foundry tracks economic resilience and well-being at national, regional, and local levels, and between age groups and income ranges.
According to the latest insights from the platform, around 16 per cent of adults in Scotland rely on their overdraft each month, rising to 24 per cent among 18 to 39-year-olds. Meanwhile, almost one in seven people (14 per cent) are spending at least 20 per cent more than they earn, and more than a third (34 per cent) see their bank account balance fall below £100 on more than one occasion each month.
As part of Economic Wellbeing Explorer’s initial rollout, public sector bodies, NGOs, researchers, economists, analysts and journalists can now register for the platform, enabling them to use these insights for evidence-based decision-making and reporting on poverty and inequality.
“For hundreds of thousands of people in Scotland, payday no longer brings relief, just a brief pause before the struggle begins again,” explained Dougie Robb, CEO of Smart Data Foundry. “Rising costs, modest wage growth, and unexpected expenses mean that many people are spending more than they earn each month, relying on overdrafts or going into debt just to cover the basics.
“The Economic Wellbeing Explorer is a completely new way to securely access in-depth financial information which gives a real insight into the economic wellbeing of the nation.”
The launch comes at a time of mounting financial pressures for many, with April bringing a wave of cost increases – including council tax, energy bills, road tax and the TV licence fee – prompting some to label it ‘Awful April’.
Creating meaningful change using data
Robb continued: “At Smart Data Foundry, we believe financial data is an untapped resource, which can help drive policymaking and decision-making that improves people’s lives. Data is not just information – it’s hugely valuable in creating meaningful change. By unlocking the power of financial data, we can transform public services, ensuring support reaches those who need it most.
“While we are rolling out the Explorer in Scotland first, we aim to extend this initiative to the rest of Great Britain in the near future, adding more indicators and allowing users to explore data at an increased level of granularity.”
The launch follows a successful pilot with East Renfrewshire Council, where financial data was integrated with Council data such as requests for financial support, and other public sector data, such as DWP data on children living in poverty, to better understand the impact of the cost-of-living crisis. The Council was able to target interventions more effectively, uncovering hidden pockets of deprivation that were previously missed.
All data supplied to Smart Data Foundry is deidentified at source and is held and managed within a strict information governance framework to ensure security, privacy, and ethical standards.
Smart Data Foundry was established in 2022 to unlock the power of financial data to tackle big issues like poverty and inequality and create a positive impact across society, the economy, and the environment.
An independent University of Edinburgh subsidiary, the not-for-profit organisation works with major financial institutions, the public sector and charities to develop insights, inform solutions, and drive forward the data-for-good movement.
SDF has access to unparalleled de-identified private sector financial data via pioneering partnerships with leading financial institutions, including NatWest, Virgin Money, Sage, and Moneyhub.
